by Jutta Kern

with expert contribution on
Some Like it Hot: Differing Approaches to Climate Change by Helmut Hojesky

With crude oil prices surpassing the $60/barrel threshold, renewable energies have entered the realm of US energy policy debate as one possible way of long-term price mitigation. Nevertheless, renewable energy sources are still a sideline in the energy bill, which is currently under consideration by the US Congress. Bills in both chambers target tax incentives; but while the House of Representatives agreed on an energy bill that focuses on rather traditional sources such as electric utilities and promoting fossil fuels like oil, natural gas, and coal, the Senate passed an energy bill that encourages renewable energy much more. The Senate bill, for instance, mandates doubling ethanol use in gasoline, a measure intended to simultaneously decrease US dependency on foreign oil imports and support the farming industry, which grows the corn used in ethanol production. Wind and solar energy, according to the Senate bill, will also enjoy some tax incentives as will technologies like hybrid cars. The two chambers have to agree on a common energy bill, which will then be sent to the White House for the President’s approval. Environmental advocates, such as the US Public Interest Research Group (US PIRG) especially welcomed the 10 percent renewable electricity standard and tax incentives for energy efficient buildings, appliances, and vehicles, but strongly criticized the bill for failing to guarantee any oil savings. Compared to the House Energy Bill, the Senate Energy Bill looks much better for renewable energies and fuel efficiency; nevertheless, it does not contain any mandatory limits on greenhouse gas emissions to counteract global warming.

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